Is the tide turning in Coinbase’s favor? After coming under attack from the SEC, the American giant is experiencing a sudden resurgence of interest thanks to its involvement in the Bitcoin Spot ETF that BlackRock and Nasdaq are looking to roll out. The company’s share price has reached its highest level since March 2023.
Coinbase at the center of Bitcoin Spot ETFs
Recently, legal proceedings by the Securities and Exchange Commission (SEC) had shaken Coinbase, the largest US platform dedicated to cryptocurrency trading. However, Brian Armstrong’s company has not said its last word.
After filing an initial registration application for a Bitcoin spot ETF, Nasdaq has reiterated the operation to incorporate certain clarifications requested by the SEC. According to the new document, Coinbase has signed an oversight agreement for BlackRock’s upcoming Bitcoin ETF, called « Spot BTC SSA ».
» On June 8, 2023, Nasdaq signed an agreement with Coinbase, Inc. (« Coinbase ») to enter into a Surveillance Sharing Agreement (« Spot BTC SSA »), and the associated document became effective on June 16, 2023. «
With this revelation, BlackRock demonstrates its seriousness to the SEC by responding positively to its requests, while choosing to one of the most serious players in the field on American soil.
At the same time, other Bitcoin ETF applications have been updated in response to SEC requests. These reveal that Coinbase plays a leading role in the cryptocurrency sectoreven among the institutional public.
The Chicago Options Exchange (CBOE) reported that Brian Armstrong’s company to collaborate with CBOEunder the same conditions as for Nasdaq, should one of its ETF applications be validated by the regulatory institution. As a reminder, the CBOE is working to issue a Bitcoin spot ETF. with US financial giant Fidelity.
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A breath of fresh air for COIN action
All these announcements have helped Coinbase’s image in the wake of the SEC affair. Since the Nasdaq’s announcement for BlackRock’s ETF, the company’s share price has been sent flying by a succession of green candles: COIN up 12% in the last 24 hours.
In the medium term, this increase is amplified by the recent rise in the Bitcoin (BTC) price to the $30,000 mark. Thus, the share price rose by a dazzling 70%. since June 6, 2023, the day its dispute with the US regulator broke out.
COIN share price between June 6, 2023 and today, from $47 to $80
Whether on traditional markets or cryptocurrencies, few assets can claim such growth over such a short period from a company with global influence in its sector.
Even so, Coinbase is far from having caught up with the highs reached during the previous bullrun. A few months after its stock market listing, COIN had touched the $370 mark in November 2021, before falling precipitously in correlation with the cryptocurrency market. At the time of writing, its shares are valued at $79.85 each.
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Published by Éditions Larousse
Sources : Nasdaq, TradingView
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A lifelong enthusiast for new technologies, I gradually became involved in Web3 activities in the year 2021. As time went by, I wanted to do my bit. That’s when I became a writer, with a view to explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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